Nike reported strong quarterly results this week, but traders were torn over whether the Dow darling could continue its rally.

The athletic apparel maker on Tuesday posted fiscal second-quarter earnings of 90 cents per share on $7.69 billion in revenue, beating Wall Street's profit expectations but falling short on sales. Nike said future orders rose 20 percent, easily beating estimates.

Its shares touched an all-time high on Wednesday before reversing and closing more than 2 percent lower. Investors likely took profits after the stock gained more than 30 percent this year, said trader Guy Adami.

He believes Nike is worth owning because its growth justifies the valuation. Trader Tim Seymour — who owns Nike shares — also contended that Wednesday's drop "isn't a reason to sell it."

Others showed much less optimism for the stock. Technician Ari Wald contended that Nike could fall to $117 per share, down from about $129 per share on Wednesday.

Nike has repeatedly proven hard to bet against, said trader Steve Grasso. However, he argued it could be carefully shorted after any more strength.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, BAC, BX, CLF, DIS, F, FCX, GE, GM, GOOGL, INTC, JCP, JPM, KO, LGF, RL, T, TWTR, VRX. Tim's firm is long BABA, BIDU, MCD, NKE, SBUX, YHOO.

Steve Grasso

Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MBLY, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long OXY, BP, COP, CVX, FCX, NEM, RIG, WYNN, AMZN kids own EFA, EFG, EWJ, IJR, SPY

Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.

Ari Wald

Ari does not personally own any stocks. He nor his firm have any conflict with the stocks we are discussing today.